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X1 E84 (2011 - current) The new to the US BMW X1 will arrive at BMW dealers in the fall of 2012 as a 2013 model year. Get your X1 28i with either sDrive (RWD) or xDrive (AWD) or get the US exclusive I6 N55 powered X1 35i dDrive.

The interior cargo room isn't vastly different, 1305 litres in the Golf versus 1350 litres. I felt that the backseat of the Golf had more headroom and thus more comfortable. In fact, I feel the Golf has a better interior overall except for the Touchscreen (which I dislike). Given you're comparing two all-wheel drive versions, it's hard to say which one has crisper handling. Normally I'd say the X1 has a sharper turn-in and more engaging experience than a Golf MkVI TDI but the Golf feels better because it's lower to the ground. Add to that the R version's stiffer springs and equipment, it's likely that the Golf R is better in the corners.

I'm assuming the latest version of the xDrive 25i is very similar to the xDrive 28i in terms of power and efficiency. And it may not so some of my comments may not be applicable.

If I had never owned a VW and wanted AWD instead of RWD, I may have gone with the Golf R if its true ownership costs were similar to the X1.

But in my particular case(X1 Euro Delivery), the X1 ownership costs will be significantly less then what I would have spent on the Golf R plus I've already owned a couple of VW's so I'd like to try something new.

The Golf R isn't really faster then the X1 28i but its not as fuel efficient and it doesn't include the free maintenance as well. "Free maintenance" may not be offered in Australia but its offered in the US and obviously built into the price of all BMWs sold here. In addition, the Golf R may depreciate more simply because a new GTI/Golf is coming out within the next year.

The 2013 X1 28i is a great deal according to most US based reviews if you are disciplined about not getting too many expensive packages/options. (I am not sure if its priced aggressively or not in Australia for the standard features that come with it)

If you want to have lots of options while still watching your budget and you don't drive that many miles, the Golf R probably makes more sense.

Below are some of the reasons I went with the X1.
1) I already have owned VWs including a GTI and a 2.0T Jetta so its time to try something new
2) For my daily driver at least, I wanted a good automatic instead of a manual and the US Golf R only comes with the manual. I owned a manual GTI in the past and it was fun as long as I wasn't in traffic but I would probably only get a manual right now in a true sports car that I would mostly use in non commute situations.
3) significantly lower base price with European Delivery then the Golf R base price.
4) Much better fuel economy and a larger fuel tank = less wasting of money and time filling up
5) iDrive. BMWs Tech Package is probably overpriced by 15% but its pretty impressive and has features not available on the VW.
5) I believe that it will be a quieter car with less rattles.
6) Moderately more cargo space
7) Perhaps insurance costs that aren't as bad since I would think more females would own an X1 then a Golf R.
8) The X1 is not going to be replaced by a new model anytime soon.

In your shoes, I would certainly test drive both cars and do a realistic appraisal of ownership costs over the time you expect to own the car. If you don't need a new car right now and can go without AWD, I would consider holding out for the next generation GTI since its expected to be slightly lighter and more powerful then the current GTI. The tech features will also be improved.